European stock prices went down a lot on the day when many companies shared their profits, after some big companies like Kering SA and Nestle SA reported not-so-good results. By 9:25 a.m. in London, the Stoxx Europe 600 Index had fallen 1.6%, which was its biggest drop during the day since April.
France’s CAC 40 Index dropped 1.9%, making the total drop since its highest point in May more than 10%. If the index ends the day at this level or lower, it will mean a technical correction.
This drop happened because many companies had disappointing profit reports, which made investors less confident. The big drop in the Stoxx Europe 600 Index shows how poor company profits affect the European stock market.
Investors are watching closely to see what happens next and waiting for more information from company leaders.
